North Carolina: The New Wall Street
Credit Suisse was founded in 1856, starting as a Swiss company and moving out to reach globally today. They are a financial services holding company that runs the Credit Suisse Bank, among other financial services investments. This company has been a leader in the market for many years already, but what they’re doing now is changing the business once again.
Wall Street, as everybody knows, is a street in Manhattan – but not just any street. This street houses the origin of the New York Stock Exchange and other historical headquarters of the most prominent brokerages and banks in the United States of America. It is also a widely used term to cover the whole of the financial community. Wall Street is the big guy, the boss man and the wolf.
Wall Street is the biggest leader in the financial industry. Any company who claims a part in the market is located there. If they weren’t, it would almost seem silly. Businesses on Wall Street are trusted as being state of the art due to the reputation and history the street itself has. Nobody would expect a big company to move themselves away from that history, but that is exactly what Credit Suisse did.
The Move to North Carolina (And Other Metro Areas)
In May, the news was announced that Credit Suisse would be creating approximately 1,200 jobs in North Carolina, primarily by taking those jobs from New York City. This move was planned in an attempt to make up for consistent year to year losses
— $5.5 billion in the past two years. The jobs will be moved to Credit Suisse’s corporate center in Raleigh, North Carolina over the next couple of years.
With the move, the company also intends to expand its services to cover support for all corporate and business functions. The expansion in services in addition to lower property and staff costs is expected to save Credit Suisse a good amount of money, although an exact predicted amount has not been disclosed by the bank.
Credit Suisse is not the first company to make the move from Wall Street to a cheaper location base. Other banks that have made a move include Goldman Sachs moving to Utah and Morgan Stanley moving to Maryland. These companies have not necessarily removed themselves from Wall Street entirely, rather they have simply expanded their reach to these cheaper areas.
With that said, Credit Suisse is also not the only company making the move to Raleigh, North Carolina. Deutsche Bank and Fidelity are also following suit. North Carolina has been reported as the fourth fastest growing metro area in the country over the past decade
One reason why this area may be so popular for these organizations is because of its close proximity to large universities such as Duke University, the University of North Carolina and North Carolina State. North Carolina State’s Department of Computer Science is also reported to have more than 6,200 eFinancialCareers alumni, making it a decently attractive hub for financial institutions.
Deutsche Bank currently already employs more than 160 financial professionals in Cary, North Carolina and expects to create over 300 more full time professionals over the next couple of years. It’s safe to say that these areas, regardless of which bank has moved to them, will continue to encourage growth in these companies. In the metro areas in question – such as Seattle, Salt Lake City and Raleigh, the well-educated labor force and heavily involved local government make them appealing to institutions such as Credit Suisse, Deutsche Bank, Fidelity, and many others.
Credit Suisse in particular has actually had a presence in Raleigh for over twelve years now but is only recently making a more prominent move. They expect to continue decreasing the amount of jobs located in New York City and increase North Carolina jobs by approximately 2,000 over the next several years.
A representative at Credit Suisse comments that Raleigh is a growing hub for technology, making it a perfect place to expand in areas such as cyber security, automation, data analysis and addition technology capabilities. The cost and quality of living in Raleigh is also a large factor in the move.
During the move, most of the top priority roles of Credit Suisse will remain stationed in New York City. The bases in Raleigh, North Carolina will mostly consist of the middle and back end positions. These positions will be the ones responsible for tasks such as technology infrastructure, software and application development, finance, CCAR compliance, cyber security, and risks in market, operational and credit.
The shift in positions will not only be made up of current workers relocating to North Carolina, but also new hires found in the Raleigh area. Credit Suisse has also taken a higher interest in virtual hiring, mostly focusing this area on interns and graduate hires. Many of these hires even completed their initial interview through video call. With this step forward, Credit Suisse is also moving into the virtual new age – a step many companies have begun to take in recent years.
The move has encouraged an increase in applicants by over 80% according to the bank. Current members employed at the bank are also rather excited for the move, most of whom are highly considering transferring over with the company to the new location. These include top positions of the company, and their moves are said to be discussed later over the next two or so years.
This move has increased publicity for Credit Suisse by a long haul, which will surely be great for their business moving forward, regardless of the move to North Carolina. Moving forward, it’s safe to say that this will be a great step in taking care of the annual losses the company has suffered from. Credit Suisse is on the rise, and surely other banks on Wall Street will be soon to follow.